Rush Street Interactive shares fall after secondary offering pricing
Updated
Updated · MarketWatch · May 6
Rush Street Interactive shares fall after secondary offering pricing
13 articles · Updated · MarketWatch · May 6
The stock fell 7.8% to $26.90 after trusts tied to Executive Chairman Neil Bluhm, CEO Richard Schwartz and COO Mattias Stetz priced 10 million shares at $26.
Each seller is offering less than 10% of their holdings, the deal is due to close Thursday, and underwriters have a 30-day option for 1.5 million more shares.
Rush Street will receive no sale proceeds, but plans to repurchase 1.15 million shares and then replace its existing programme with a new $100 million buyback.
With executives selling shares and the company buying them back, who should investors believe?
Can a $100M buyback help RSI compete against giants in the high-stakes US sports betting market?